Report: I.T. Acquisitions to Increase

January 18, 2007

The number of mergers and acquisitions in the health care information technology industry during 2007 will surpass the total from last year, predicts MidMarket Capital, a Chicago-based financial advisory services firm.

The total dollar value, however, may not exceed that of 2006 because the firm believes there will be fewer billion-dollar acquisitions. In its new 2007 Healthcare Outlook report, MidMarket Capital contends that smaller vendors with superior technology are finding it more difficult to compete with larger companies and are feeling pressure from investors to sell. These larger companies, in turn, are finding acquisitions as a quick way to enter fast-growing niche markets.

The hottest of these markets, according to the firm, are wellness and disease management programs, surge planning and emergency preparedness, and consumer-driven health care. The report is available for free at midmarkcap.com.